MTN Nigeria Gets Agusto’s Highest Credit Rating

BREAKING NEWSJuly 3, 2026 at 10:25 AM UTC

TLDR

Agusto & Co. upgraded MTN Nigeria Communications Plc to Aaa rating, citing stronger earnings, cash flow, and lower debt pressure.
The upgrade follows Global Credit Rating Company’s recent affirmation of MTN Nigeria’s AAA(NG) and A1+(NG) ratings, with a stable outlook.
MTN Nigeria reported a significant increase in operating cash flow in 2025, up 154.6% from 2024, and a 73.3% rise in the first quarter of 2026 to ₦764.10 billion.

Agusto & Co. upgraded MTN Nigeria Communications Plc (NGX: MTNN) to Aaa, its highest national long-term rating, from Aa+, citing stronger earnings, cash flow and lower debt pressure.

The rating agency also reaffirmed MTN Nigeria’s short-term rating at A1+ and kept the outlook stable, according to a filing with the Nigerian Exchange. The upgrade follows Global Credit Rating Company’s recent affirmation of MTN Nigeria’s AAA(NG) and A1+(NG) ratings.

Agusto cited MTN Nigeria’s strong cash generation, liquidity, low leverage and leadership in Nigeria’s telecoms market. The agency said the company’s recovery was supported by tariff increases, higher data usage and reduced foreign-exchange pressure after the repayment of its dollar obligations.

MTN Nigeria said it is the only non-financial company with an active Aaa rating from Agusto. Chief Executive Officer Karl Toriola said the upgrade reflects the company’s earnings recovery, cash-flow quality and balance-sheet discipline.

The company generated ₦2.21 trillion in operating cash flow in 2025, up 154.6% from 2024. In the first quarter of 2026, operating cash flow rose 73.3% to ₦764.10 billion. Borrowings fell to ₦314.97 billion at the end of March from ₦419.57 billion at the end of 2025, while shareholders’ equity rose 64.7% to ₦903.94 billion.

Key Takeaways

MTN Nigeria’s rating upgrade shows that its financial recovery is gaining recognition beyond the equity market. The company has benefited from tariff repricing, rising data demand and the repayment of dollar debt, which reduced foreign-exchange pressure. Strong operating cash flow is important because telecoms companies need large amounts of cash to fund networks, spectrum, leases and service quality. The improvement in equity and decline in borrowings also strengthen the balance sheet, giving MTN Nigeria more room to manage capital spending and shareholder returns. Still, the stock has corrected from its May peak, losing market value in June as investors repriced risk across the Nigerian market. That pullback does not mean the business fundamentals have weakened. MTN Nigeria remains one of the country’s largest listed companies, with a dominant market position and data-led growth. The main risks are regulation, consumer affordability, inflation, network costs and large lease liabilities. For investors, the upgrade supports the credit story, but equity returns will depend on earnings momentum, valuation and market sentiment.

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